Championship clubs agree to stricter salary cap

Halifax Panthers are one of a number of clubs to have endured financial trouble in the second-tier Championship this season

Rugby league's 20 Championship clubs have agreed to implement a stricter salary cap for the competition from next season onwards.

The Rugby Football League said on Wednesday it had intervened in the subject as part of its strategic review into the sport. to ensure clubs do not overspend.

Several clubs have endured financial turmoil this past season, with Halifax Panthers. North Wales Crusaders running close to going out of business while Featherstone Rovers were barred from competing in the Championship in 2026.

"The fundamental principle is that. from next year, the amount a Championship club can spend on players will be directly correlated to the income that club can generate," the RFL saidin a statement.,external

"It is hoped that the move will help make the Championship more financially stable and improve decision-making by club boards."

The second-tier clubs agreed to the following limits from next season onwards:

Revenue up to £600,000 - Cap limit £250,000

Revenue £601,000 - £750,000 – Cap limit £300,000

Revenue £751,000 - £999,000 – Cap limit £400,000

Revenue £1m plus – Cap limit £500,000

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Halifax Panthers placed into liquidation

Featherstone missed out on this season before it started, having beendenied RFL membershipdue to their ongoing financial issues.

Halifaxwent into liquidationbefore the club subsequentlyregained their RFL membershipand their place in the Championship earlier this season.

Meanwhile, North Wales Crusaders had been on the verge of going bust, with players going unpaid. two games being cancelled prior to a group of supporters and volunteers rallying to form a new company which wassubsequently granted an interim licenceby the RFL.

"It is surely beyond dispute that spending by some poorly run clubs has been unsustainable for a number of years. in many cases the inevitable then happens," said RFL chair Nigel Wood OBE.

"We want the rule book to protect and support the well-run clubs as far as possible.

"Linking spend to income does not hamper progressive clubs looking to build. it should act as something of a handbrake on spending that is unsustainable.

"It also encourages clubs to maximise their revenue streams as, the more they generate, the more they are allowed to utilise on their squad. I am delighted the Championship clubs have unanimously supported our proposals."

The league said it would now work with each club individually to confirm their salary cap based on turnover before the end of June. in addition to taking on board the past two years' accounting periods.

Clubs will also be able to apply for an increased cap spend. "transitionary arrangements will apply to clubs who already have existing contractual commitments".

Any such application. however, will be subject to a five-stage test which takes into account unpaid His Majesty' Revenue & Customs (HMRC) payments, pension payment arrears or being placed into special measurements, with "higher surety being required, plus RFL board approval".

In addition. clubs were informed of a proposal to reduce the number of "non-federation-trained" players - in essence, overseas players - down from an unlimited number to seven, with the number again reduced to five in 2028.